Second-Largest Corporate Ether Holder Targets Capital Efficiency
SharpLink Gaming, one of the largest corporate holders of Ether, has authorized a $1.5 billion stock repurchase program as part of its ongoing strategy to strengthen its Ethereum-based treasury reserves.
The announcement, made on Friday, highlights SharpLink’s “disciplined capital markets strategy”, with the firm noting that no buybacks have taken place yet.
“This program provides us with the flexibility to act quickly and decisively if those conditions present themselves,” said Joseph Chalom, Co-CEO of SharpLink, adding that repurchases will only occur when the stock trades at or below the company’s net asset value (NAV) of Ether holdings.
Boosting ETH-Per-Share Through Buybacks
SharpLink explained that its goal is to accumulate and stake Ether, using share buybacks to increase its ETH-per-share metric. This approach is designed to maximize shareholder value while reinforcing the company’s commitment to Ethereum as its primary treasury reserve asset.
The company’s transition to an Ethereum-focused treasury strategy began earlier this year when Ethereum co-founder Joseph Lubin was appointed chairman. At the time, SharpLink stated:
“ETH will serve as the Company’s primary treasury reserve asset.”
$3.14 Billion in ETH Holdings
Currently, SharpLink Gaming holds 740,800 ETH valued at approximately $3.14 billion, making it the second-largest corporate Ether treasury. This position leaves the firm behind BitMine, which leads the industry with 1.5 million ETH worth $6.47 billion.
Despite not being the largest holder, SharpLink has enjoyed significant gains, reporting nearly $600 million in unrealized profits following Ether’s recent price surge.
Why It Matters for Ethereum
Lubin previously emphasized the importance of ETH treasuries for the network’s growth, stating:
“It’s going to be critical to enable the supply-demand dynamics of Ether to right-size as we build more and more applications.”
This latest move signals SharpLink’s commitment to leveraging its balance sheet to support Ethereum adoption, aligning with a broader trend of corporate crypto treasury strategies in the digital asset space.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.